smarter processes for sap moscow oct-22-2013
TRANSCRIPT
Agenda
• The Process Imperative for SAP Implementation– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP customizations
• Demo – A Day in the Life of Order to Cash
Agenda
• The Process Imperative for SAP Implementation– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP customizations
• Demo – A Day in the Life of Order to Cash
Evolution of Business Drivers in the Packaged Applications Space
Reduce Custom Coding
and related costs
Flexibility
Application Configuration
Improved System-Level Collaboration
SOA and Application Integration
Active Business
Performance Optimization
Orchestration and Inline Automated Decision Making
1980’s 1990’s 2000 - present FORWARD!
SAP Process Optimization Gaps• Understand how SAP
processes are implemented today
• Use real-time analytics to drive immediate business response to threats and opportunities
FlexibilityVisibility
Agility Control
• Enhance and change processes and business policy at the speed demanded by the business
• Enable business-led change
• Eliminate lengthy process change cycles
• Match process variants to specific business performance requirements
• Reroute work and tailor running processes to reduce bottlenecks
• Optimize business outcomes based on dynamic business conditions
• Know the status of key processes?• Get real-time visibility into bottlenecks?• Effectively reroute work to less
experienced workers?
How can the average SAP
customer:
• Know which process changes are most likely to help?
• Quickly rollout process changes?• Quickly integrate new process workers
into your business?
Agenda
• The Process Imperative for SAP Implementation– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP customizations
• Demo – A Day in the Life of Order to Cash
Where ERPs fit within Business Process Hierarchy Understanding BPH is critical to effectively manage business processes
L1
L2 - Group
L3 - Process
L4 - Activity
L5 – SAP Transactions
Category
Increasin
g G
ranu
larity
Vision / Strategy
Operation
Process
Process Hierarchy is a way of modeling large and complex processes through decomposition
into lower level processes and detailed steps to show information at different granular levels.
Process Levels - APQC Process Classification Framework
(American Productivity and Quality Center)
Managing Processes for Better Business Benefits
L1
L2 - Group
L3 - Process
L4 - Activity
L5 – SAP Transactions
SAP
L6 – Sub-Transaction and Exception Management
Category
Flexibility
Visibility
BPM
Simplicity
Optimization
Integration Automation
Agility
Consistency
ReusabilityProductivity
Record Keeping (SoR)
Data Integrity
Exception Management
Reporting
Data ReusabilityProductivity
SLA / KPI
Business Process Hierarchy
(System of Engagement)
(System of Record)
BPH Process Level – 3 and Level – 4 in BPM and ERPBPM enables Level – 3 process modeling, and orchestration, visibility for Level-4
Level 4 Process StepVerify
Customer & Product Info
Verify Customer & Product Info
Credit Limit Exceeded ?
Yes
No Create DeliveryCreate
Delivery
Manager Approval
Manager Approval
Credit Approved ?
Yes
No
Pick & Pack Goods
Pick & Pack Goods
Post Goods Issue
Post Goods Issue
Enter Order Data
Enter Order Data
Auto ReleaseBlock ?
Yes Release Credit Block
Release Credit Block
Review Credit
Increase
Review Credit
Increase
No
Hold OrderHold Order
Invoice CustomerInvoice
Customer
Post PaymentPost
Payment
Level – 3 Process - - Order-to-Cash
Level – 3 Process - - Debit / Credit Memo
Authorize Returns
Authorize Returns
Submit Returns Request
Submit Returns Request
Exchange or
Return
Return
Exchange
Create Returns with Free of Charge Subsequent
Delivery
Create Returns with Free of Charge Subsequent
Delivery
Create Returns Delivery
Create Returns Delivery
Post Goods Receipt for the Return
Post Goods Receipt for the Return
Create Credit Memo
Create Credit Memo
Require Approval ?
Yes
Issue Credit Memo
Issue Credit Memo
Obtain ApprovalObtain
Approval
No
Post Goods Issue for the
Delivery
Post Goods Issue for the
Delivery
Obtain Customer
Confirmation
Obtain Customer
Confirmation
Level 4 Process Step
Combining the ‘best of the both’ Worlds ….
• The premiere integrated business application platform
• Robust and complete transactional capabilities
The premiere BPM platform, providing a formal and complete process management paradigm
Simple process configuration and SAP transaction tailoring
Flexible, highly productive user interface
The right amount of process differentiation, driven by business need – not time and cost
Transactional Layer
Process Layer
Surround SAP With a Highly Flexible Process Layer
Transaction Orchestration
End to End Orchestration
Sub-Transaction Orchestration + Visibility
Orchestrated Exception Processes
Real-Time Monitoring and Operational Insight
Orchestrated Value Management Processes
Forensic Process Discovery
Empirical Process Characterization
Iterative Business Blueprinting
IBM BPM for SAP introduces a radically superior process paradigm for SAP
BPM enables better Business – IT Alignment without costly, unnecessary and complex SAP customization
• Evolvement of client’s requirement on enterprise supporting system–Automation Efficiency Visibility Agility…
• A balanced I/T strategy is required to optimize business supporting system.
Successful organizations will have a balanced strategy of canned and differentiating processes
Process OptimizationApproach B
Process OptimizationApproach A
DifferentiatingBusiness Processes
Non-DifferentiatingBusiness Processes
BPM
Agenda
• The Process Imperative for SAP Implementation– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP customizations
• Demo – A Day in the Life of Order to Cash
Core IBM BPM for SAP Capabilities
Business Optimization Potential
Reduce blueprinting time, cost and risk
Improve process reliability, flexibility, visibility and control
Improve process efficiency and reduce business
complexity
Iterative Business
Blueprinting
Process Integration and Orchestration
Process Automation
Process Discovery and
Monitoring
Decision Automation
Guided Workflow
Mine SAP Business Events to discover actual processes and act in real time to business challenges
Use an iterative, experiential-based approach to accelerate traditional SAP blueprinting with SAP Solution Manager
Interactively guide end users through SAP screens to improve productivity, visibility and consistency
Optimize process steps to improve cycle time, manageability and visibility of key processes
Dramatically reduce the cycle time of high volume processes by reducing/removing human interaction
Automate complex decision making to reduce bottlenecks and improve business outcomes
Innovation Transformation
• Apply the right mix of process innovation capabilities based on:– Process characteristics– The level of optimization desired– Current process innovation maturity
IBM BPM Integrates Seamlessly with SAPFI
FinancialAccounting
COControlling
PSProjectSystem
WFWorkflo
w
ISIndustrySolutions
HRHuman
Resources
MMMaterials
Mgmt.
SDSales &
Distribution
PPProductionPlanning
QMQualityMgmt.
PMPlant
Maintenance
SMServiceMgmt.
ECEnterpriseControlling
AAAsset
Accounting
SAPApplications
Upload processes to Solution Manager
Download processes from Solution Manager
Orchestrate SAP Processes and
Services
Retrieve Enterprise Service Definitions
Monitor SAP Business Events
s
IBM BPM Enables Iterative SAP Process Blueprinting
Use ‘live’ process execution to design and test SAP business processes, then implement your SAP process inside the same tool!
Model Processes
Playback Process
Invoke Screens
Monitor Results
Simulate and Refine
Deploy!
SAP Solution Manager
Design, build and refine processes for execution in a single integrated tool set. Optionally store process definitions in SAP Solution Manager Repository.
Iteratively invoke or design screens as part of the process definition exercise
Playback modeled processes at any time to directly see, feel and touch the real process
Empirically understand how the process can meet KPIs and SLAs
Simulate changes without changing the current model. Incorporate new process changes
Promote the new or changed process into production
IBM BPM for SAP – Level 3 ProcessGuided Workflow – Automatically Sequence and Route SAP User Transactions
Create Order
(VA01)
Create Delivery
(VL01N)
Pick Items(VL02N)
Post Goods Issue(VL02N)
Create Invoice
(VF01)
Post Customer Payment
(F-28)
Guide users to do right process step at the right time always; Prioritize process tasks dynamically to avoid ‘fire fighting’ and ‘chasing’ Real-time visibility and intervene to prioritize tasks Use process analytics to improve processes Combine SAP and non-SAP process steps to realize e2e process orchestration
• Automatically sequence the correct SAP transactions for the correct users at the right time, in the right execution priority
• Easily detect and correct bottlenecks, stoppages and other critical process issues
• Leverage process rules, rich process analytics for performance improvement
• Leverage Collaborative capabilities to enable users work together in real-time, reduce TAT (turn around time)
• Automatically allow end users to see all the relevant details about a process definition and a specific process instance
Guided Workflow for Exchange / Returns Process
IBM Confidential
19
Process Flow in IBM BPM
Transactions (Native SAP Screens)
Automatically Invoked in SAP
Authorize Returns
Authorize Returns
Submit Returns Request
Submit Returns Request
Exchange or
Refund?
Refund
Exchange
Create Returns with Free of Charge Subsequent
Delivery
Create Returns with Free of Charge Subsequent
Delivery
Create Returns Delivery
Create Returns Delivery
Post Goods Receipt for the Return
Post Goods Receipt for the Return
Create Credit Memo
Create Credit Memo
Require Approval ?
Yes
Issue Credit Memo
Issue Credit Memo
Obtain ApprovalObtain
Approval
No
Post Goods Issue for the
Delivery
Post Goods Issue for the
Delivery
Obtain Customer
Confirmation
Obtain Customer
Confirmation
BPM e-Form
BPM e-Form
VL01NVL02N
VL02N
FB75 VF04
VA01 (SAP TCode) BPM e-Form
BPM StepBPM Step
Legend
Business RuleBusiness RuleSAP StepSAP Step
Level 3 Process
Level 4 Process Step
IBM BPM Guided Workflow Requires Limited IT Involvement
Launch a new process instance or select from your inbound task list.
Complete your SAP transaction. Review the process picture, see who has worked on previous process steps, leverage previous process collaborations
1
23
Import the SAP Business Process Hierarchy (BPH) into IBM BPM
BPM UIBPM UISAP UISAP UI
IBM BPM Guided Workflow Enhances the User ExperienceThe SAP GUI is Automatically Surrounded by Rich Process Tools for Every End User
Standard or ‘Z’ SAP GUI
Process Status (Diagram)
Process History
Process Collaboration
History
Process Experts
Community
Process instance data
from previously
steps can be pre-loaded
into the SAP screen
Process Launch Bar
Launch any process for which a user is authorized
See a pictorial process history and downstream steps
See a detailed stream showing all process steps completed thus far
See the complete collaboration history for the current process step
Instantly contact an identified expert in the current process step
IBM BPM Guided Workflow for SAP automatically transforms any SAP GUI into a rich process workspace, tightly
integrated into its process context.
Agenda
• The Process Imperative for SAP Implementation– Business challenges faced by customers due to silo-ed systems and
broken processes
• BPM's Role and Value in enabling Smarter Process Orchestration in ERP / SAP landscape
• Introducing IBM BPM Capability for SAP
– Enables business flexibility without complex and costly SAP customizations
• Demo – A Day in the Life of Order to Cash
How does IBM BPM enhance Traditional SAP?
23
Process Monitoring & Discovery - Visibility across processes in SAP & other applications
Blueprinting - integrated with SolMan, but using IBM agile BPM Playback Methodology
Guided Workflow – implementing business user screen flow w/o written code
Process Orchestration – deeper process management of transactions
Decision Management - Extending SAP Logic – using natural language, your vocabulary & simple logic vs. code
Process Integration – across SAP and non SAP, multiple departments and manual steps and exceptions (e.g. Order to Cash)
Keep SAP clean – avoid bespoking e.g. for differentiating fit/gap, move configuration complexity to the process layer
Process automation and optimisation Agile business driven processes/rules
Reduce IT TCO Productivity improvements Faster process cycle times and time to
market for process/rule changes
BPM Adoption – Best Practices
StartHere
• Automate a manual process• Provide visibility • Faster cycle times• Improve compliance
• Innovation • Go to market• Customer centricity• Product flexibility • Industry standards
• Economies of scale (factory approach)
• Accelerate Time to value• Prebuilt assets / reuse• Standards (business + IT)
First Project
-Point solutions-Early wins
First Project
-Point solutions-Early wins
Program - industrialisation
-Optimize projects-Extend to new projects
Program - industrialisation
-Optimize projects-Extend to new projects
Transformation
-LoB, Enterprise focus-Align strategy and execution-e.g. Globally integrated enterprise
Transformation
-LoB, Enterprise focus-Align strategy and execution-e.g. Globally integrated enterprise
Adoption and Maturity
Note 1Utility Co. uses SAP for billing
but can’t optimiseBPM enhances Refund Process
-62% Faster cycle time 20 FTE reduction
ROI after 14 months
Business users directly manage the changes to the business process
Business users built and deployed 200 processes to production within 18 months
SAP Harmonisation project to transform time to market for new products
EU Utility
Use IBM BPM Throughout Your SAP Life Cycle
A New SAP Implementation
SAP Version Migration
Continuous SAP Process Optimization
End-to-end Process Integration
Functional Extensions and Customizations
Any SAP Implementation can benefit from every IBM BPM capability at every life cycle stage.
Stab
le SA
P
Imp
leme n
tation
IBM is the proven leader in all aspects of BPM
*Source: IBM Press Release; http://www-03.ibm.com/press/us/en/pressrelease/37376.wss
IBM was named the #1 vendor in BPMS software with a 27.1 percent share, almost triple that of its closest competitor*
#1 in BPMS market share
Process Designer / Optimizer
IntegrationDesigner
Process Center Console
Process Center
Portal
Mobile App
Process ServerCore BPM Advanced Automation & Integration
BPMN BPEL AdaptorsProcess Rules PerformanceData Warehouse Integration
Social Collaboration
Coaches Dashboards
Network Multiple Process Centers
Server RegistryShared Assets
Versioned Assets
Express Standard Advanced
WAS ND 8.5
Mobile Toolkit
IBM Business Process Manager V8.5